RON MEISELS AND MONICA RIZK 00:00 EST Saturday, January 23, 2010

Bullish on MAG Silver

Technical Analysis shows the miner is set to rise

From about $15 in early 2008 (A) MAG Silver Corp., (yesterday's close $6.67), had a sharp decline to $3.50 (B),

a rally to the falling 40-week moving average (40wMA) (C) and then a pullback toward $5 (D). In 2009, the

40wMA started to flatten and, most recently, the price started to move above this average (E). This price action

suggests a bullish technical pattern known as a ''W'' formation (see dotted lines). The recent rise above $7.70 (E)

confirms the bullish pattern and signals the start of a new major up-move. Only a decline below ?$6 would reverse

the positive status.

Point and Figure measurements provide an initial target of $9. Higher targets are also visible.

Ron Meisels is a contributor to the http://www.NA-marketletter.com website. Monica Rizk is the senior technical analyst for Phases & Cycles Inc.

They may hold shares in companies profiled. Please see the site for a glossary. Chart source: http://www.decisionplus.com.

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